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Portfolio Investing

We provide a wide range of innovative portfolio solutions to our clients. After establishing a client’s risk and time horizon, we help them to focus on core and tactical allocations, which enhance the return and manage risk.

1. Core Asset Allocation Portfolio

Aggressive Wealth Maker

Wealth Maker

Wealth Keeper

Core Portfolios are built with low cost ETF’s and mutual funds. In building core portfolios, we consider several pillars, including but not limited to long term performance, the people managing the fund, the quality of the fund’s parents’ company and expenses. There is ongoing due diligence with these portfolios.

2. Tactical Asset Allocation Portfolio

Tactical Allocation Portfolios are considered “strategic tilts” within the portfolio to get exposure to a specific theme an investor may have. Tactical portfolios may help to enhance the return and/or mange the risk of the portfolios.

Tactical Allocation Portfolio includes some of the following investment options:

  • Stocks
  • Options
  • Structured Notes


What Are Structured Notes?

Notes are investments designed to offer investors a level of downside investment protection against market declines, while still allowing investors to participate in upside market appreciation. Structured Notes are issued by the world’s largest financial institutions such as Citigroup, Wells Fargo, Morgan Stanley, and others. They are debt obligations of these issuers.

When considering Structured Notes, it is important to understand how they are created. A Structured Note is a “wrapper” containing a zero-coupon bond and an options package. Both the options and the bond are obligations of the issuer; thus, it is critical to be comfortable with the issuer (like any bond you buy) before purchasing a Structured Note.

Three ways Structured Notes are used in a portfolio include: 

Growth Notes

A growth note’s upside return is explained by its “participation rate.” A very common example would be a 5 year growth note linked to the SPY. It might have 150% participation rate and 30% downside protection. At maturity in 5 years, if SPY is up 50% the note would return 50% * 1.50 (the participation rate) = 75%, while if the SPY drops 40% the note would only participate in the 10% of losses realized below the 30% level.

Income Notes

An income note has a fixed coupon, so it will not participate in upside returns the way a growth note will. However, an income note can produce impressive returns even if the underlying asset return is negative over the term of the Note. Income notes have a protection level for both the principal invested as well as the coupon payments. If an income note has, for example, a 30% coupon protection level then coupons will be paid as long as the underlying asset hasn’t fallen by more than 30% at each payment. An income note on SPY might theoretically have an 8% annualized coupon with 20% coupon protection. If SPY spends all of 2020 trading sideways, sometimes slightly positive and sometimes slightly negative, that 8% coupon will be paid out 2% each quarter and thus produce equity linked income where owning SPY outright fails to do so.

Principal Protected Notes

Principal Protected Investments combine some of the features of a fixed-income security, such as return of principal at maturity, with the potential for capital appreciation that you get from equities. They are designed to protect against losses at maturity, while providing the opportunity to participate in the partial gains on an equity investment.

Above information is a big picture overview.  Before investing, please discuss details of all investments with your advisor